Brand positioning is an act of designing the offering and image of a company in a manner that the brand occupies a distinctive place in the minds of its target audiences. A brand positioning strategy revolves around creating brand associations in the minds of customers to compel them to have a powerful perception of the brand.
Brands use a brand positioning statement for telling about their uniqueness and how they are different from the other market players. It suggests why your target audiences should opt for your product or service instead of other competitors.
All in all, it is a result-driven process of positioning your brand in the hearts and minds of customers to enjoy a conversion-oriented loyal customer base.
- What is Brand Positioning?
- What Is a Brand Positioning Statement?
- Objectives of a Brand Positioning Strategy
- Types of Brand Positioning Strategy
- How to Find Your Ideal Brand Positioning Statement
- Effective Brand Positioning Examples
- Wrap Up!
What is Brand Positioning?
Brand positioning is defined as how customers perceive a brand and assign a position to it in their minds. It deals with how a brand wants its target audience to think about a brand through brand associations, which in turn helps differentiate it from other competitive brands. A brand often undertakes a brand positioning strategy to maximize market share, competitive advantage, customer loyalty, sales, and more.
What Is a Brand Positioning Statement?
The process of implementing a brand position in its target market starts with the positioning statement which incorporates a holistic picture of how a brand would like to be perceived by its customers.
A brand positioning statement is actually who, why, when, where, and how of your brand’s identity. While designing the positioning statement of a brand, the framework which is used is-
To (target audience) Product X is the only (frame of reference) that (benefits delivered) because (reasons to believe)
Objectives of a Brand Positioning Strategy
A brand positioning strategy is charted with these three objectives in mind:
A brand must offer a product or service that is significant and relevant to customers. Through a proper understanding of the target audience, brand positioning must cater to the concerns of customers. Relevance also needs to endure the rapidly changing times.
A brand’s positioning needs to be unique and different from others in the market. Only when it offers something beneficial to a customer will they chose them over other brands.
Not only should a brand make claims, but brand positioning is also dependent on the business’s ability to deliver results that live up to those expectations. Only credible brands can gain the trust of customers.
Types of Brand Positioning Strategy
There are eight types of brand positioning strategies that brands can utilize to mark their presence in the dynamic business environment:
1. Quality-based positioning
A brand position strategy based on the high quality of their product or service and their commitment to maintaining that status is a quality-based brand position. E.g., the positioning of the brand Bose in providing the best sound quality in their audio products.
2. Value-based positioning
Value-based positioning is somehow similar to quality-based positioning. However, it includes an additional rational appeal. Such brands usually conclude that their higher prices add to higher value and better results. For example- L’Oreal Paris with their tagline “Because you’re worth it” to high-end market products which are “worth it”.
3. Problem-solving positioning
This brand position strives to solve problems for their customers. As solution providers, they necessitate a need for their products for consumers to live with ease. For example- Trivago helps in comparing hotel rates so customers can choose the most cost-effective option.
4. Leader-based positioning
Such a type of brand positioning is rare but very powerful. Brand positioning here depends on the brand representing itself as the leader in its particular niche. This might be about its unique features, high quality, large customer base, number of functioning years, etc. For example- Facebook rightfully holds its position as a pioneering organization and positions the brand as a leader too.
5. Competitor-based positioning
This type of brand positioning takes the benefit of increased competition by directly or indirectly comparing their products, showing their superior quality, and establishing superiority in the market. For example- Coca-Cola and Pepsi ads.
6. Price positioning
Price as a basis of brand positioning is a powerful strategy as it appeals to a large market of people and is relevant in all situations and purchase decisions. Many airline companies take benefit of price-driven brand positioning.
7. Benefit-based positioning
Benefit-based brand positioning relies on highlighting the benefits of certain unique or cutting-edge features that a particular brand offers. It is also established that no other brand will offer these benefits, so the brand position is strengthened. For example- Sensodyne toothpaste.
8. Celebrity-based positioning
In this case, a celebrity with influence is assigned to endorse and market the product as a part of a brand’s positioning strategy. Attention is gathered not only through the influence and familiarity of the celebrity but also by adding a humanized front to its efforts. The company Lux constantly uses celebrities to endorse their soaps and other products.
How to Find Your Ideal Brand Positioning Statement
In the three simple steps listed below, your brand can find its fit with the brand positioning that genuinely reflects its essence:
1. Understanding your brand’s potential
This includes understanding what your brand currently has and what it aims to achieve in the future. Your brand needs to state who your target audience is and what do they need from your brand. Next, what is your brand capable of, and why it is relevant to its customers? There is also a need to evaluate the competitors and their brand positioning.
2. Writing a brand positioning statement
Now, a brand positioning statement needs to be chosen, which will include your customers’ needs, the results that your brand is committed to providing, and how it is going to be unique in comparison to its competitors.
3. Staying committed to your brand position
Lastly, committing to your brand position means that it needs to be spread through all aspects of the business, such as product ideation, formulation, marketing, packaging, acquiring resources, etc.
Effective Brand Positioning Examples
Some of the popular examples of brand positioning are
1. Kotak Mahindra
Kotak Mahindra uses a positioning strategy to put Kotak as a one-stop solution for all their financial services needs. With the proposition statement “Think Investments, Think Kotak”, Kotak Mahindra puts its competitive stance quite effectively.
2. Verizon Wireless
Cell phone company Verizon Wireless positions itself as “America’s Largest, Most Reliable 4G LTE Network.” The brand has established itself via billboards, print ads, television ads, etc in a manner that it has proved its claim and gained a loyal customer base of many Americans.
3. Australian Yellow Tail Wines
One of the best examples of effective brand positioning is Australian Yellow Tail Wines. It positioned itself with a strategy to be perceived as “approachable, easy-to-choose, and fun”
As you can notice, a strong brand tries to make a difference while entering or competing in its target niche. With the help of a powerful brand positioning strategy, a brand makes a statement to pull in the attention of the target audiences and grow the brand.
How important do you find brand positioning strategy in optimizing the presence, lead generation, and conversion of a brand?
Pinky is an MBA in Marketing from the University of Mumbai. She loves helping people out in learning Marketing and sharing latest ideas and tactics for growing businesses.